Singapore has launched new initiatives to boost digitalization among its enterprises, especially small and medium-sized enterprises (SMEs), which are considered the backbone of the nation’s economy. S Iswaran, Singapore’s Minister for Communications and Information, announced three key initiatives at an industry networking event.
Minister Iswaran delivering the opening address.
The Infocomm Media Development Authority (IMDA) and Enterprise Singapore launched “Start Digital”, an initiative under the “SMEs Go Digital” program. Start Digital will give new SMEs a head start by providing two free foundational digital solutions for a minimum of six months.
Additionally, IMDA introduced a business-to-business (B2B) e-invoicing network. This network will allow companies, including SMEs, to utilize e-invoicing to enhance productivity and accelerate payment cycles. Electronic invoicing, or e-invoicing, automates the creation, exchange, and processing of payment requests between suppliers and buyers through a structured digital format.
The third initiative, the “Data Protection Trustmark (DPTM),” is a joint effort between IMDA and the Personal Data Protection Commission (PDPC). This initiative helps organizations, particularly SMEs, establish consumer trust in their data protection practices and policies, ultimately bolstering their business competitiveness.
Under the Start Digital initiative, new SMEs can choose two free foundational digital solutions from five core business function categories. IMDA has pre-approved the software, which is provided by industry partners:
- Accounting
- Human resource management system & payroll
- Digital marketing
- Digital transactions
- Cybersecurity
Peter Ong, Chairman of Enterprise Singapore, emphasized that the Start Digital initiative equips SMEs with digital tools “from birth,” enabling them to incorporate digital practices into their organizational DNA from the outset. This early adoption of digital tools will help them establish a strong foundation for growth, resilience, and productivity.
Tan Kiat How, Chief Executive of IMDA, highlighted the importance of a “digital-first” approach for businesses aiming to thrive in the digital economy. He expressed enthusiasm for the industry collaboration in offering innovative solutions to support businesses on their digital transformation journeys.
Six partners - DBS, Maybank, OCBC, Singtel, StarHub, and UOB - have joined the Start Digital initiative.
Andrew Lim, Managing Director of the Business Group at Singtel, expressed the company’s commitment to supporting SMEs in their digitalization endeavors by providing a comprehensive suite of solutions. He emphasized the importance of cybersecurity for businesses of all sizes.
Samuel Tsien, Group CEO of OCBC Bank, underscored the significance of digitalization for SMEs’ success, acknowledging that their journey is more intricate than that of consumers. He cited a 2018 survey where a majority of OCBC’s SME customers recognized the need for digitalization. Tsien lauded the Start Digital program as timely and crucial, highlighting OCBC’s commitment to assisting SMEs in their digital transformation across various functions.
Piyush Gupta, CEO of DBS Bank, stressed the substantial efficiency and outreach improvements that SMEs can achieve through digitalization. He acknowledged the resource constraints faced by individual SMEs and expressed DBS’s eagerness to support their digital transformation.
SMEs participating in Start Digital are required to commit to using the software for at least 18 months, with no charges for the first six months. The software providers participating in the Start Digital program will offer discounted rates for the remaining period, with all software priced below S$50 per month per software. As SMEs grow and require more sophisticated digital solutions, they can access support from other “SMEs Go Digital” initiatives and refer to the Industry Digital Plans (IDP) to assess their digital readiness and adopt appropriate pre-approved solutions.
To further enhance the productivity and efficiency of Singapore’s business ecosystem, a nationwide network based on the established Pan-European Public Procurement On-Line (PEPPOL) standard has been launched. This network allows businesses to exchange e-invoices electronically. This streamlined approach enables companies to track invoices more effectively, reduce operating expenses, and accelerate payment cycles. The new network allows Singaporean companies to exchange e-invoices with other connected businesses globally.
This initiative is part of the “Nationwide E-invoicing Framework” announced by IMDA in May 2018. As Singapore’s PEPPOL Authority, IMDA establishes relevant domestic rules and specifications and has appointed its subsidiary, Singapore Network Information Centre (SGNIC), to operate the Service Metadata Publisher (SMP). The SMP is a directory service essential for PEPPOL’s functionality. It lists companies registered on the Singapore PEPPOL network and enables Access Points (APs) to locate companies before sending e-invoices. SGNIC provides the SMP service free of charge.
IMDA, as Singapore’s PEPPOL Authority, also certifies local AP providers. Companies and e-invoice service providers must connect to the PEPPOL network through certified APs. IMDA has certified an initial group of 11 AP providers, including local and international service providers offering a wide array of services to meet diverse business needs. Ten additional APs are in the process of obtaining certification, and more are expected to join in the future.
André Hoddevik, OpenPEPPOL Secretary General, praised Singapore’s adoption of the PEPPOL approach in its e-invoicing strategy. He lauded IMDA as the first PEPPOL Authority outside Europe and acknowledged the significance of the PEPPOL eDelivery Network launch in Singapore. Hoddevik views Singapore as a model for other nations exploring strategies to support domestic and cross-border e-invoicing.
Jean-Michel Bérard, CEO & Founder of Esker, a France-based company, expressed strong support for the global movement toward standardized exchanges in e-invoicing, citing PEPPOL as a prime example. He affirmed Esker’s readiness, as a certified PEPPOL Access Point, to assist Singaporean companies in implementing e-invoicing and streamlining their processes.
Dr. Chong Yoke Sin, Chief of the Enterprise Business Group at StarHub, emphasized the benefits of a standardized e-invoicing network, stating that it will increase efficiency and open international opportunities for Singaporean businesses. He sees this as a significant stride toward transforming Singapore into a digital economy.
Beginning today, companies can sign up with the first 11 certified APs. These APs serve as gateways to the network and offer services such as sending and receiving PEPPOL-formatted e-invoices or converting other invoice formats, like PDFs, into the PEPPOL format.
Source: IMDA/Enterprise Singapore. The DPTM logo.
To encourage broader adoption of e-invoicing, grant support will be available to help build the network, educate businesses, and bring them on board. On the government front, IMDA is collaborating with key agencies like the Accountant General’s Department (AGD) to promote e-invoicing. AGD is joining the nationwide e-invoicing framework to provide government vendors with more options when transacting with the government, in addition to the existing Vendors@Gov system. In the coming months, AGD will be selecting a service provider. The Singapore government is fully committed to joining the nationwide e-invoicing network and will provide more details later this year.
In the evolving landscape of _Services 4.0_, where service delivery is becoming increasingly automated, corporate data usage is critical. It allows for more personalized services, like shopping recommendation engines. As customers’ digital interactions and transactions grow, so does the amount of personal data collected. This data can be utilized to improve the customer experience.
A PDPC survey* revealed that two out of three consumers prefer brands certified to protect their personal data. Furthermore, four out of five organizations prefer to partner with entities that demonstrate responsible personal data management.
These trends led to the development of the DPTM certification framework and controls. Aligned with Singapore’s Personal Data Protection Act (PDPA), it incorporates elements of international benchmarks and best practices. This involved studying data protection laws from Australia, Hong Kong, the European Union, as well as the Privacy Guidelines of the Organisation for Economic Cooperation and Development (OECD), the Asia-Pacific Economic Cooperation (APEC) Privacy Framework, APEC Cross Border Privacy Rules (CBPR), and Privacy Recognition for Processors (PRP) systems.
The DPTM serves as a clear indicator that an organization adheres to transparent and accountable data protection practices, as evaluated by independent third parties. DPTM-certified organizations must not only demonstrate sound practices but also have a robust system for incident monitoring and detection, along with comprehensive incident management and recovery plans.
Organizations with DPTM certification can display the logo as part of their branding, differentiating themselves and assuring business partners and consumers that they handle personal data responsibly and are accountable for its protection.
Forty organizations from various sectors participated in the DPTM pilot program. As of today, six pilot organizations have received certification, including Carpe Diem @ ITE, DBS Bank, Mamoru Singapore, MaNaDr, TRS Forensics, and TTSH Community Fund. The remaining organizations are expected to be certified by the end of Q1 2019. Certified organizations will be listed on IMDA’s website.
Lam Chee Kin, Head of Group Legal, Compliance and Secretariat at DBS Bank, expressed honor in being the first bank to achieve Data Protection Trustmark certification. He sees it as a testament to DBS’s commitment to maintaining customer trust. Kin emphasized the importance of demonstrating responsible data protection as companies utilize data to enhance their products and services.
Dr. Siaw Tung Yeng, CEO & Founder of MaNaDr, highlighted the importance of trust for MaNaDr, emphasizing their commitment to safeguarding the personal data and medical records entrusted to them by doctors and patients. He views the Data Protection Trustmark certification as a way to demonstrate accountability and value the trust placed in MaNaDr.
Organizations like GOGOVAN Singapore, M1, and UOB have acknowledged the value of DPTM and expressed interest in pursuing certification.
Stamford Low, Director of Customer Service at M1, a leading communications provider in Singapore with over 2 million customers, emphasized the paramount importance of customer privacy. He stated that M1 adheres to strict practices to protect customer information, adhering to a high standard of personal data protection as outlined in their Data Protection Policy. Low highlighted M1’s commitment to the principles and requirements of the Personal Data Protection Act 2012 and their goal to leverage Data Protection Trustmark certification to showcase their rigorous data protection practices.
Applications for DPTM certification are now open to all organizations. To encourage adoption among SMEs, IMDA has waived the S$500 application fee until December 31, 2019. Applicants must also pay an assessment fee ranging from S$1,400 to S$10,000 to an assessment body.
Enterprise Singapore and the National Council of Social Service (NCSS) can provide support to Singaporean companies, including NCSS members, by helping to defray the costs of certification and consulting services.
*Between February and March 2018, PDPC surveyed 1,500 individuals (aged 15 and above) and 1,543 organizations across various sectors.